Template:Isda 11 summ

An indemnity is all very well ...

Bear in mind, also, that your operating theory here is that your counterparty is a {{{{{1}}}|Defaulting Party}} — i.e., for all intents and purposes, broke. So while it’s a fine thing, this indemnity might not be of much practical use.

Is it covered in the close-out calculation?

No. The “{{{{{1}}}|Expenses}}” referred to in this provision would not be captured by the definition of “{{{{{1}}}|Close Out Amount}}” or “{{{{{1}}}|Early Termination Amount}}” because, Q.E.D., they arise only once that amount has been determined and the {{{{{1}}}|Non-Defaulting Party}} is in the process of collecting it.

Stamp Tax and Section 4(e)

In the limited circumstance of default, this section modifies the arrangement for who pays {{{{{1}}}|Stamp Tax}} as set out in Section {{{{{1}}}|4(e)}} (which says it is the person whose tax residence precipitates it).